Cyber Risk – is your business really covered?

Are you rolling the dice with your business reputation when it comes to cyber risk?  It appears that our endearing “she’ll be right mate” kiwi attitude, does not serve us, or our businesses well when it comes to the many types of cybercrime rampant today.

With almost a million kiwis per year now falling victim to cybercrime, it’s clearly time for businesses to stop rolling the dice and take some serious steps to assess their current vulnerabilities, manage the associated risks, and get the right kind of cover.

In January of this year, NZ Tech Chief Executive Graeme Muller explained that kiwis are facing “…increasing and rampant cybercrime threats, and the situation is getting worse.”

At some stage, it’s likely that your business will suffer a cyber-attack.  So how did we get to this point?

Cyber risk and COVID

Cyber risk security has become a massive topic due to the nature of digital age theft.  Technology has embedded itself deeply into both our social and business lives.  It’s constantly changing how we interact with one another, how we express ourselves, the way we learn, and play, and how we access goods and services.

The COVID pandemic increased New Zealand’s reliance on digital devices and the internet, as we learned new ways of running our businesses.  And even though privacy is talked about time and time again in SME and larger businesses nationwide, when we really think about, are we actually that particular about our cybersecurity?  

Clearly we can’t afford to be complacent any longer.  

To better manage the cyber risk challenges facing our ever-changing digital world, we need to work smarter.

Cyber breaches, the numbers don't lie

(and they don’t paint a pretty picture either!)

Do you know how to spot a scam?  An actual attack?

It’s become increasingly harder to spot a cyber attack, as hackers are using legitimate tools like Apple or Microsoft to gain access to our systems.  In the last year, two-thirds of breaches in New Zealand were people being manipulated by scammers.

In January, scoop.co.nz reported the following stats:

  • Between Jan-Sept 2020, the government entity that tracks cyber breaches, CERT, received 5712 reports of cyber incidents which resulted in direct financial losses equalling $14.2 million
  • 87% of kiwis acknowledge online security is important, but 40% say safeguarding this is actually “inconvenient”
  • Ransomeware has become the biggest threat, locking up systems and data, then demanding a ransom in return for the release
 
Here in the Waikato, local tech company The Instillery, showed that over our nationwide lockdown in March last year, we saw a 600% increase in cybercrime, 45% of this was made-up of SME businesses.  How sure are you that you weren’t one of those statistics?

How do I protect my business?

If you’re not sure where to start, you’re not alone!

A report from business leaders, NortonLifeLock in April suggested 47% of kiwis aren’t sure how to protect themselves from cyber risk.  When speaking about our changes in our online habits due to COVID, Senior Director Mark Gorrie explained:

Cybercriminals have taken advantage of our changing behaviors and increased digital footprint, and quickly learned to exploit the heightened activity

A  cyber-attack could cost your business more than money.  It could also threaten intellectual property, and put customers’ personal information at risk – which can clearly have an effect on business reputation.  And what took years of sacrifice and hard work to build, can be destroyed in minutes.

Businesses can simply not afford to act after the fact!  And yet, that’s what the majority of us are currently doing with 98% of cybercrime victims in the past year taking some action after detecting unauthorised access to their account(s), with 62% making their passwords stronger.

Cyber Liability

Having the power to easily adapt to new technology will be paramount for any business growing throughout this decade.  To do this effectively, we need to consider our cyber risk and how we can mitigate that risk, and the potential financial stability of our growing businesses.

When taking up a Cyber Liability Policy, you’re ensuring that you minimize any potential financial loss that would be incurred during a breach.

How Quantum can help

Cyber Insurance policies vary.  And that’s why having an adviser that really understands you and your business needs is so valuable.  Together we’ll talk you through the options, and help you weigh up the pros n cons, so you can decide what the most suitable products for your business are.

Some of the options worth considering may be:

First-Party Losses

  1. Business Interruption – covers financial loss suffered as a result of a cyber attack
  2. Cyber Extortion – covers the costs of a cyber attack, such as the hiring of negotiation experts, covering extortion demands, and the prevention of future threats
  3. Electronic Data Replacement – covers the costs of recovering or replacing your records and other business data

 

Third-Party Losses

  1.  Security & Privacy – covers damage to your reputation resulting from data breaches, such as loss of 3rd party data held in your system
  2. Defence costs – funds the legal costs of defending claims
  3. Regulatory Breach Liability – covers legal expenses and the costs of fines arising from an investigation by a government regulator
  4. Electronic Media Liability – covers the costs of copyright infringement, defamation claims, and the misuse of certain types of intellectual property crime
 
Remember, speaking with an expert insurance adviser is a FREE service, and knowledge is power, so here are two quick ways we can help you take your cyber power back: